Mid-Day Gold & Silver Report – 4/27/2012
Brandi Brundidge
4/27/2012 12:03:00 PM
GOLD PRICE RISES; CHINESE FINANCIAL REFORM URGED
Gold prices have risen to a two-week high today. Over the past month, the yellow metal has been steady between $1,610 and 1,680 per oz. The climb in price is a direct result of the worse-than-expected American economic forecast. However, Gold remains in the same range as it has been for the month. Commerzbank analyst Carsten Fritsch said, “At the end of the year, we expect Gold to resume its uptrend, but not before that. We expect this range in trading to continue.”
China faces important decisions on banking policies in the near future. As China has grown, so have the effects of its economic policies on the United States and the rest of the world. The main issue is that the majority of the Chinese banks are state-run. Lending for state-owned entities is flowing and gives way to large levels of debt. On the other side is the private sector, which are a driving force of the Chinese economy and the creation of new jobs. The private sector has a large disadvantage in getting funding over state-run companies. A recent World Bank study says, “China needs to take a major step forward in its process of economic reform, including substantially changing how its financial system works.”
The value of the American dollar took a step back today based on the gross domestic product report. The value drop was slight, and the blow was softened thanks to a strong personal consumption report. The Federal Reserve met this week and made no moves to boost the economy with another round of quantitative easing. Federal Reserve Chairman Ben Bernanke said that the Fed is “prepared to do more” if needed.
At 1 p.m. (EDT), the APMEX precious metals spot prices were:
- Gold - $1666.50 - Up $5.00
- Silver - $31.37 - Up $0.09
- Platinum - $1576.80 - Up $6.60
- Palladium - $682.10 - Up $8.80
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APMEX Market Reports provide our readers with a review of spot price activity and some of the factors that may be affecting the market for Precious Metals. While the information is obtained from sources we believe to be reliable, we do not guarantee its accuracy or its completeness and we encourage you to conduct your own investigation prior to making any decision based on the information. The Market Reports are not intended as a comprehensive discussion and there may be other factors affecting the financial marketplace. These Market Reports are provided for informational purposes only and do not constitute a recommendation by APMEX to hold, purchase or sell any Precious Metal product. All orders, purchases and sales, if any, are subject to the terms of the User Agreement and other applicable policies
